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US stocks rose on Monday, posting its fourth consecutive gain amid sluggish trading. Investors apparently evaluated year-end prospects amid soaring coronavirus cases.
Looking at it closely, the S&P 500 hit its 69th record close for 202, with all major industry groups advancing. Nasdaq 100 also jumped 1.5%, outperforming other indices. Two-year bond yields rose after the session, while rates fell over the long term.
"We like this, we love to see the Santa Claus rally continue," said Victoria Greene, founding partner and CIO of G Squared Private Wealth. "And I think the ability of equity markets to climb the wall of worry should not be underestimated," she added.
The annual event, known as the "Santa Claus Rally", began on Monday. Since 1969, the S&P 500 had an average 1.3% gain over a seven-day period that includes the last five trading sessions of the year and the first two trading days of the new year.
Megacap stocks contributed the most to the S&P 500, with Apple, Microsoft and Meta Platforms among top performers. Tesla is also on track for its biggest four-day gain since September 2020.
Meanwhile, travel stocks fell after hundreds of flights were canceled over Christmas due to skyrocketing Covid-19 cases. Anthony Fauci, chief medical adviser to US President Joe Biden, spoke in support of making vaccinations mandatory.
JPMorgan strategists said there is no reason to think that the ongoing stock rally will end anytime soon because it could get wider.
On a different note, China's central bank pledged to boost economic support over the weekend, in contrast to moves by the Federal Reserve and other central banks to fight inflation by cutting stimulus.
Other key events for this week are:
- closing of markets in New Zealand, Australia and Canada (Tuesday);
- data on oil reserves (Wednesday);
- report on US jobless claims (Thursday);
- closing of markets in Germany and Japan (Friday);
- closing of markets in Australia (Friday).
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